Africa imports approximately 8 million tonnes of steel annually, predominantly long steel products (rebar, wire rod, sections) used in construction. Steel mini-mills using electric arc furnaces (EAF) fed by locally collected scrap offer a lower capital cost path to domestic production compared to integrated steel plants requiring coking coal and iron ore. Nigeria's Ajaokuta integrated steel plant, despite decades of investment, has never reached sustainable production. In contrast, EAF mini-mills including Delta Steel, Amalgamated Steels, and Premier Steel have scaled up rebar production, displacing some Ukrainian, Chinese, and Turkish imports.
Scrap Collection Ecosystem
The viability of African EAF mini-mills depends on the maturity of the domestic scrap collection ecosystem. Egypt's established scrap trading market supports Ezz Steel's 6.5 million tonne annual EAF capacity. Nigeria's scrap supply is growing as vehicle fleet age increases and construction demolition produces steel scrap. Power supply reliability is the critical operational constraint: EAF mini-mills are major power consumers and require stable grid supply or captive power generation. Steel traders, construction companies, and investors in Nigerian and Egyptian steel can access market contacts on intra-africa.com.
For businesses looking to expand across Africa, intra-africa.com offers a comprehensive trade directory, verified buyer and seller listings, and real-time market intelligence covering all 54 African nations. It remains an indispensable resource for anyone serious about intra-African commerce.